Local stores, like Imagine That! are getting ready for the holiday season during the recession.

"I've extended the evening hours, we're open every day of the week and some evening hours, and if someone wanted an appointment they can make it. Customer service, that's what the big box stores don't have," said owner Marlene Holenkamp.

Holenkamp opened the toy store ten years ago and tried to distinguish itself from big chain competition through customer service.

"I've always got fresh ground coffee, some desserts, brownies or something for them to have, and try to make them how genuinely grateful I am that they've come in here," Holenkamp said.

At Wal-Mart employees decked the isles and stocked shelves with new toys before the first trick-or-treaters arrived.

"Last year we had Christmas set up a little bit sooner, actually. This year we didn't set it until October 10th," said Wal-Mart manager Ben Judson.

The world's largest retailer recently lowered prices on hundreds of toys, sparking a toy price war with Meijer.

"They're doing what they can to help out the consumer and so are we. Yes, we did the same thing, we've lowered our toys, we've created some savings, twenty to thirty percent off, we've got ten for ten toys, so it's a community thing. It's not us against them, it's all of us together," said Judson.

Retailers are trying to encourage shoppers to shop early, if they have the money.

"All we ask is that the consumer stop in, take a look, see if we can help them out, create a sale for them and take care of their family," Judson said.

Holenkamp agreed, and started holiday sales to get customers through the doors.

"This week for example is double credit week, which in effect gives them 20 percent back, then we have a program where they can get a certain amount back depending on how much they spend," said Holenkamp.

Retailers are facing an uphill battle with consumers, 6 million more Americans were out of work this September compared to last September.

To help adjust, retailers purchased less inventory to avoid last season's excess merchandise sales.